DEENA PAINTS Vs. CCE

JUDGEMENT

(1.) IN the impugned Order Ld. Commissioner has held "the duty of Rs. 33,799,83.54 was not paid/short paid by reason of wilful misstatement and or suppression of facts with an intention to evade the payment of duty. The duty of Rs. 33,799,83.54 is therefore, rightly demandable under provision to Section 11A(1) of Central Excise Act 1944. The interest on the duty of Rs. 33,799,83.54 not paid/short paid by reason of wilful mis -statement or suppression of facts is also demandable under Section 11AB of the Act ibid. The penalty equivalent to Rs. 33,799,83.54 is also imposable on the said M/s. Deena Paints Ltd. under Section 11 AC of the Central Excise Act, 1944.

(2.) THE facts of the case in brief are that the appellants are engaged in the manufacturing of paints, Varnishes. They are availing modvat credit of duty paid on inputs under Rule 57A of the Central Excise Rules, 1944.

(3.) ON 9.10.1997 Central Excise Officers visited the factory of the appellants. On physical checking of the finished product as well as raw materials a stock of finished product involving Central Excise duty of Rs. 13,116 and raw materials involving Central Excise duty of Rs. 25,094 was found in excess and was seized. Statement of Shri Budh Ram foreman of the factory was recorded. In his statement he deposed that he had been working in the factory for the last 26 years; that he was keeping the daily account of production whatever was manufactured in a day in his diary; that he handed over the diary to the officers; that in the said notebook he had maintained the details of daily production of paints manufactured container capacity -wise, colour -wise as well as date -wise production of the same and that he had signed every page of the notebook; that in the appellant's factory total of 11 persons were working under his supervision; that he was responsible for the manufacturing of the finished product out of the raw material.